Brian Ó Domhnaill (Fianna Fail)
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I raise this issue on behalf of the farming community in County Donegal and, in particular, small farmers and business owners. It is European Union and Government policy to meter and, accordingly, charge businesses and individuals who use water for non-domestic purposes. Donegal County Council appointed consultants, Laing O'Rourke, to carry out countywide metering of non-domestic customers to give it an insight into the full cost of providing water and waste water services to the non-domestic sector. Following the survey, it was discovered approximately 7,500 non-domestic units had meters connected to the water supply and a further 500 are also being billed, bringing the total number of bills issued by the local authority to approximately 8,000.

Farming organisations, including in particular the IFA, have highlighted that many bills are issued to small farmers. Elderly small farmers come into my clinics who may have only one sheep or cow, yet they receive a bill with a standing charge of €350 and, in some instances, charges for water they have not used. There are huge discrepancies in the system. I acknowledge that Donegal County is willing to discuss issues on a one-to-one basis and it is accommodating. However, the issue is causing mayhem and panic nationwide. For example, I was contacted on Christmas Eve by two elderly farmers in their 80s who were crying because of this issue, which must be examined.

I call on the Department of the Environment, Heritage and Local Government to introduce a tiered system whereby smaller users incur a lower charge than larger users. A farmer with two or three sheep cannot be compared with a farmer with 200 or 300 sheep and incur the same charge. A tiered approach must be taken to this. Local authorities face budgetary constraints and they are under financial pressure. They must collect money, but departmental officials should discuss this issue with county mangers to bring about a resolution that would ease the burden on farmers and small businesses.

I also refer to the non-imposition of the property tax on holiday homes. It is estimated there are 9,000 such homes in Donegal. Many of the owners of these homes live in Northern Ireland and they have not received bills for the tax on their holiday homes. It is unfair when local retired farmers who contributed to the State through the years are being billed for water while holiday home owners from Northern Ireland are not being billed. The Minister should also examine the issue. Many of my council colleagues in Donegal have raised concerns about this issue. The Minister of State will understand and I hope she will relay my concerns to the Minister for the Environment, Heritage and Local Government. The issue must be examined on compassionate grounds. Scope must be given to local authorities to make discretionary decisions that are favourable to local small farmers in particular.

Máire Hoctor (Tipperary North, Fianna Fail)
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I am pleased to take this matter on behalf of my colleague, the Minister for the Environment, Heritage and Local Government, and I thank Senator O'Domhnaill and the Seanad for this opportunity.

The Government's policy on charging for water supply and waste water has been in place since 1998. The policy was developed to implement the polluter pays principle and to meet the requirements of the European Union water framework directive, which requires member states to apply suitable charges to recover fully the costs of providing water services by 2010. The directive also requires member states to ensure water pricing polices provide adequate incentives to use water resources efficiently. The Government's water pricing policy requires non-domestic users to pay for water services, including the cost of treating and supplying water, meter installations, the marginal capital costs of providing water services infrastructure and the ongoing operational and administrative costs associated with the provision of the services. The non-domestic sector includes the agricultural sector. The Exchequer funds the capital cost of water services infrastructure for domestic users and the operational cost of domestic water services provision is met from the Exchequer via the local government fund. Cost recovery from the non-domestic sector is to be achieved by way of a meter-based volumetric charge. Cost recovery is to be without profit, with charges based on actual metered consumption and no subsidisation of the domestic sector by non-domestic consumers is allowed. Where there is a mixture of domestic and non-domestic use, such as a farm, allowance is made for the domestic element, which is deducted from the overall charge.

In response to representations from the farming sector, billing guidance that issued to local authorities in December 2006 included a request that authorities consider the necessity for special discounting arrangements in the case of multiple water meters on fragmented small farm holdings. The guidance recommended that the total metering charge in such instances should not exceed 180% of the cost of the first connection, irrespective of the number of meters. The December 2006 guidance also provided interim advice, based on a study by the County and City Managers Association, that a domestic allowance for mixed-use connections, including farm connections, of 225 cu. m. be applied by all local authorities. This was a significant increase on the allowances which had been allocated by most local authorities previously.

The 2008 water charges, as supplied by the local authorities, show an average combined charge for the supply of water and treatment of waste water of €2.07 per cubic metre. Charges for water in Ireland are considerably lower than the European average which was €3.25 in 2007 and which are as high as €5.09 in Germany and €5.63 in Denmark. It is not possible to make any further concessions for farmers as this would conflict with our legal obligations under the water framework directive.

Brian Ó Domhnaill (Fianna Fail)
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I appreciate the response. However, it is not very positive on this occasion. I understand where the Department is coming from on the matter. It is making the assumption that it has given a dispensation through the local authorities by allowing the total metering charge to be a maximum of 180% of the first meter, which is €350. This means that a person can get two meters for €630. That is accepted and that is the charge being applied. However, where there is one connection for a small farmer who may be making almost nothing from farming, that farmer is being charged €350 annually, which is excessive.

John Paul Phelan (Fine Gael)
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Hear, hear.

Brian Ó Domhnaill (Fianna Fail)
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I understand that under European legislation a dispensation was given for domestic users. We should go back to Europe and fight for our small farmers if possible.

David Norris (Independent)
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Hear, hear.

Brian Ó Domhnaill (Fianna Fail)
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I will be saying to the Minister for the Environment, Heritage and Local Government, Deputy Gormley, that we should do that.

Pat Moylan (Fianna Fail)
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Only a question is allowed.

Brian Ó Domhnaill (Fianna Fail)
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We need to look again at a situation where an elderly farmer of 85 on the minimum wage or less is being charged €350. Such people have no income. I ask the Minister of State to raise the matter again with the Minister, Deputy Gormley. We need to take this issue on and protect the most vulnerable people in our society at this time. I again thank the Minister of State for her response.